The Effectiveness of financial controls during 1996, 2001 and 2011 Census Years in Statistics South Africa

Abstract

The primary research objective of this study was to determine the effectiveness of financial controls within Stats SA during the 1996, 2001 and 2011 census years. The study relied on various official internal Stats SA documents and others in the public domain; Audit Reports from the office of the Auditor General; and other relevant literature in order to address the research objectives. The findings indicate that although the Medium-term Expenditure Framework (MTEF) and Public Finance Management Act (PFMA) frameworks were in place and provided principles, norms and standards for financial controls during the census years, these financial controls were not fully adhered to; the recruitment and management of fieldworkers did not often follow the established labour and tax laws; cash management for remunerating fieldworkers and contract management for service providers presented major challenges. Audit Committees made recommendations to improve financial performance but senior management failed to enforce adherence to financial controls; senior management lacked the expertise, experience and capacity to manage the census; and adopted IT systems also compromised financial controls. Efforts to address the initial challenges encountered during the 1996 census year had very little impact and therefore the challenges recurred through the subsequent years. Based on the findings one can observe that financial controls at Stats SA have not been effective. Therefore, it is recommended that Stats SA should build the capacity of senior managers to manage the census; ensure that budgeting is informed by plans, increase awareness of financial controls to enhance compliance to PFMA; invest in effective cash management systems for payments of fieldworkers during the census; invest in integrated human resources and financial management systems; and increase IT skills within Stats SA.